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Anti-Money Laundring, CDD &KYC (Muslim Commercial Bank)

2.
Introduction
MCB Bank Limited, with more than 60 years of
experience as one of the leading banks in Pakistan,
was incorporated on July 9 in 1947.
 MCB was nationalized along with other private banks
in 1974 as part of Government of Pakistan's economic
reform movement
 Today, MCB in one of the largest foreign banks in Sri
Lanka, the first bank in Pakistan to launch Global
Depository Receipts (GDR) in 2006,

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The bank has also been acknowledged though
prestigious recognition and awards by Euro money,
MMT, Asia Money, SAFA (SAARC), The Asset and
The Asian Banker.

4.
VISION & MISSION
Vision Statement:
To be the leading financial services provider,
partnering with our customers for a more prosperous
and secure future
Mission Statement
We are a team of committed professionals, providing
innovative and efficient financial solutions to create
and nurture long-term relationships with our
customers. In doing so, we ensure that our
shareholders can invest with confidence in us.

5.
Core Values
INTEGRITY
We are the trustees of public funds and serve our community with
integrity. We believe in being the best at always doing the right thing.
We deliver on our responsibilities and commitments to our customers
as well as our colleagues.
INNOVATION
We encourage and reward people who challenge the status quo and
think beyond the boundaries of the conventional. Our teams work
together for the smooth and efficient implementation of ideas and
initiatives.
EXCELLENCE
We take personal responsibility for our role as leaders in the pursuit of
excellence. We are a performance driven, result oriented organization
where merit is the only criterion for reward.

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CUSTOMER CENTRICITY
Our customers are at the heart of everything we do. We thrive on
the challenge of understanding their needs and aspirations,
both realized and unrealized. We make every effort to exceed
customer expectations through superior services and solutions.
RESPECT
We respect our customers’ values, beliefs, culture and history. We
value the equality of gender and diversity of experience and
education that our employees bring with them. We create an
environment where each individual is enabled to succeed.

7.
Money Laundering
Ordinance and ACT
Anti-Money Laundering Ordinance 2009 has been
promulgated thus equipping a financial system with legal
backing for controlling the menace of money laundering.
The act of money laundering would be a serious offence
punishable under the provisions of the Ordinance. The
Ordinance has specified the role of different government
departments, banks, regulatory bodies and investigating
agencies for keeping a strict track on movement of illegal
funds through the financial systems.

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The Ordinance has also elaborated the procedures to
identify and highlight the suspicious account
transactions through the banking system. As Defined
in the AML Act 2010, the Federal Government by
notification through official gazette established a
Financial, Monitoring Unit (FMU) which is housed
in the State Bank of Pakistan's Building as an
independent monitoring body.

9.
MCB Anti-Money Laundering
Compliance Group also embraced various internal
changes to further strengthen role of Compliance
Function for Prevention of Money Laundering
Activities and Combating Terrorist Financing, In
line with MCB s slogan of Being the Most compliant‟
Bank, Group implemented a Centralized Transaction
Monitoring System called MANTAS to monitor
account activities and identify various patterns of
transactions as demonstrated by Customers and Field
Offices to Highlight Suspicious Ones.

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In Continuation to the above, Group also deployed a
Separate Name Filtering Solution, called HOTSCAN
Online to monitor all the remittances, which are
routed through SWIFT; Solution's main purpose is to
capture any transaction, in which either remitter or
beneficiary s name matches with the Names‟
sanctioned by international regulatory bodies
operating under the instructions of United Nations.
*Society for World Wide Interbank Financial Telecommunication (SWIFT)*

11.
Sections for Money Laundering
Be aware of their personal legal obligations and the legal
obligations of the Bank. (See Section 2).
Be aware of the Bank's Policy and follow the Bank's
procedures defined by external as well as internal
requirements. (See Sections 3 - 6).
 Be alert for anything suspicious related to customers and
transactions. (See Section 7).
Report suspicions as per internal procedures developed in
line with State Bank of Pakistan (SBP) and Financial
Monitoring Unit (FMU) regulations. (See Section 8).

12.
STAGES OF MONEY LAUNDERING
Placement - (Injection or Pre-washing)
Placement, being the first stage is the means by which
funds derived from a criminal activity are introduced
into the financial system, either directly or through
using other retail businesses. This can be in the form
of large sums of cash or a series of smaller sums.
Initial proceeds of drug trafficking or street sales of
drugs are always in cash.

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Layering - (Stacking or Washing)
The aim of the second stage is to disguise the
transaction through a succession of complex financial
transactions with the purpose of erasing as quickly as
possible all links with its unlawful origin. The funds
may be converted into shares, bonds or any other
easily negotiable asset or may be transferred to other
accounts in other jurisdictions.

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Integration - (Recycling)
Complex integration schemes then place the laundered
funds back into the economy through real estate, business
assets, securities and equities, in such a way that they re-
enter the financial system appearing as normal business
funds that have been legitimately earned.
The largest amount of criminal money that needs to be
laundered comes from the sale of illegal drugs, primarily
heroin, cocaine and cannabis.

15.
PUNISHMENT FOR MONEY
LAUNDERING
Whoever commits the offence of money laundering
shall be punishable with rigorous imprisonment for a
term which shall not be less than one year but may
extend to ten years and shall also be liable to fine
which may extend to one million PKR and shall also
be liable to forfeiture of property involved in the
money laundering. [Anti-Money Laundering Act,
2010].

17.
Knowing your customer means:
Seeking evidence of identity and address and
independently confirming that evidence at the start of
a business relationship with the Bank. (See sub-
sections 4.3-4.10);
Seeking information regarding the nature of the
business that the customer expects to conduct with
the Bank, establishing sources of income and
expected patterns of transactions, and keeping that
information up to date, to show what might be
regarded as normal activity for that customer.

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All resident prospective customers for accounts with
MCB must be seen face to face except those
customers who are living abroad and wants to open a
non-face-to-face / on-line account; adequate
measures in this regard should be taken, for example,
independent verification by a reliable 3rd party, client
report from the previous bank / DFI of the customer,
etc.

19.
Risk Management
MCB Bank has good risk framework a Risk Management &
Portfolio Review Committee is in place which has five members
including chairman of the committee. This committee is
responsible for developing risk frame work according to the
guidelines of SBP.
Currently a centralized framework is apply by the MCB which is
comply with the guidelines of SBP I will discuss in detail where
it applied for risk mitigation of all types of risk faced by the
bank in this dynamic environment. Here under all types of risk
which faced by the bank.